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Letter to the Editor

Parts.com, Inc. Directors Approve One-for-Ten Reverse Split; Updates Latest Developments in Europe and eAutoclaims Partnership

SANFORD, Fla. -- Parts.com, Inc. has announced its directors have approved a one-for-ten reverse stock split and an update on developments in Europe and the eAutoclaims partnership.

Every ten shares of parts.com common stock will convert into one share on the effective date of the split. Shareholders will receive an additional share for fractional shares. The reverse stock split is scheduled to become effective at the close of business on June 27, 2001 and reduce the number of shares issued and outstanding from approximately 30,145,197 million shares to 3,014,519 million shares and the public float from 8,398,646 shares to approximately 839,864 shares with approximately 4,000 shareholders of record. The number of authorized common shares will be reduced from 50,000,000 to 5,000,000.

Shawn D. Lucas, President and CEO of parts.com, Inc., stated, "It is the unanimous belief of the Company's Board of Directors that the decrease in value in the share price has resulted in an unattractive stock price.

"We believe that stock price is only one of the components by which a company can be valued, and considering the very difficult and painful business cycle, this restructuring will assist parts.com by making the Company stronger in the long term and more attractive to investment capital. The Company has reduced its staff to sixteen, of which six are software developers. Our focus remains toward the opportunity and potential that lies ahead."

Mr. Lucas continued saying, "Parts.com announced a partnership with eAutoclaims in April 2001 in an effort to streamline the parts procurement process of OEM collision parts from parts.com's dealership network to the more than 2,500 eAutoclaims body shops. This required some customization to our TradeMotion Software, which would directly impact the collision industry and put parts.com in direct competition with OEConnection(TM) and ChoiceParts(TM). To date, parts.com has received more than $300,000.00 in new revenue from this partnership. With respect to our European Initiatives, we are awaiting the completion of TradeMotion 4.0 which was scheduled to be released on May 10, 2001 and is currently slated for release June 29, 2001. Once TradeMotion 4.0 is completed, it will take between four to six weeks for each European customized marketplace to be built. We will scale our software development team as additional sales warrant. We hope to have the marketplaces built in time for demonstrations at the 'Equip Auto Show' in Paris, France later this year."

Outside of these developments, parts.com was successful in negotiating a tentative arrangement with the Internal Revenue Service, which resulted in a down payment of $50,000.00 on June 8, 2001, and subsequent payments of $25,000 a month thereafter beginning on July 15, 2001. The legal paperwork and final approval by the Internal Revenue Service should take between 60 and 90 days based on their estimates. Parts.com has reduced its outstanding accounts payable by more than $400,000 and its total cash outlay needed to run the day- to-day operations currently are approximately $118,000 a month, including the $25,000 payment to the Internal Revenue Service. Parts.com will await its auditors' classification on the new revenue and how this will impact second quarter profitability.

Mr. Lucas concluded saying, "It remains my strong personal conviction that parts.com is well ahead of the competition on software development and we continue to make recommended adjustments to our software to the benefit of our dealer partners. We have a working solution for the automotive industry. Technology budgets have been slashed and companies are looking for rapidly deployable, cost effective e-commerce software that will provide an almost immediate return on investment."

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